Beginners Module 2 - Business Ownership

Empowering
African Entrepreneurs
THE TEF BUSINESS MANAGEMENT

TRAINING PROGRAMME
BEGINNER’S COURSES: MODULE 2
BUSINESS OWNWERSHIP
1 www.tonyelumelufoundation.org
Empowering
TABLE OF CONTENTS
01 Introduction to Entrepreneurship
01
Introduction
& to Entrepreneurship & Skills
Skills Requirement
Requirement
02 02 Organizing
Organizing your Company, Staffing your Company, Staffing Requirement
Requirement
03
03 Business Ownership & Management Structure
04
04 Developing Core Values, Vision and Mission
Procurement Process
05 Procurement Process
Empowering
BUSINESS OWNERSHIP
OVERVIEW MAIN OBJECTIVES
At the end of the training participants will be able to;

This module introduced entrepreneurship which is the core to
➢ Describe an entrepreneur and entrepreneurship in the context of
entry into the business world. A clear understanding and
distinction of an entrepreneur and the concept of business venture.
entrepreneurship is very important. ➢ Understand the concepts of Vision and Mission Statements.
The module is another star-up pack that enables entrepreneurs

➢ Identify and Discuss Entrepreneurial Contexts and Characteristics.
understand the very fundamental elements of entrepreneurship
and the major requirements needed to succeed as an ➢ Define different types of business ownership.
entrepreneur. Entrepreneurship is often regarded a been
➢ Create Staffing Plan & Process for their organisation.
significance to the development of man-kind and the society at
large. ➢ Understand Procurement Process Flow
Empowering
1.0 - INTRODUCTION TO ENTREPRENEURSHIP
➢ An entrepreneur is a person who identifies opportunities,

assembles all the resources (human and material) needed to
pursue the opportunity and creates an enterprise around the
opportunity; and nurtures it to growth. He possesses flair for
creativity and innovation as well as knowledgeable about his
environment.
➢ To start a business, it is essential to learn the specific skills that

underpin these qualities. Let us look at some of the
characteristics of entrepreneurs.
Empowering
ENTREPRENEURIAL SKILLS
PERSONAL SKILLS INTERPERSONAL SKILLS
➢ Optimism: Are you an optimistic thinker? As a successful entrepreneur, you'll have to work closely with
people – this is where it is critical to be able to build great
➢ Vision
relationships with your team, customers, suppliers, shareholders,
➢ Initiative
investors, and more. Some people are more gifted in this area
➢ Desire for Control than others, but, fortunately, you can learn and improve these
➢ Drive and Persistence skills. The types of interpersonal skills you will need include:
➢ Risk Tolerance
➢ Leadership and Motivation
➢ Resilience ➢ Communication Skills and Listening
➢ Personal Relations
➢ Negotiation
➢ Ethics
Empowering
THE ENTREPRENEURIAL PROCESS
Idea Generation
To generate an idea, the entrepreneurial process must pass through

three stages:
➢ Germination: This is like seeding process, not like planting seed. It is

more like the natural seeding. Most creative ideas can be linked to
an individual’s interest or curiosity about a specific problem or area of
study.
➢ Preparation: Once the seed of interest curiosity has taken the shape
of a focused idea, creative people start a search for answers to the
problems. Inventors will go on for setting up laboratories; designers will
think of engineering new product ideas and marketers will study
consumer buying habits.
➢ Incubation: This is a stage where the entrepreneurial process enters

the subconscious intellectualization. The sub-conscious mind joins the
unrelated ideas to find a resolution.
Empowering
THE ENTREPRENEURIAL PROCESS
Feasibility study:
➢ Feasibility study is done to see if the idea can be commercially viable.

It passes through two steps:
➢ Illumination: After the generation of idea, this is the stage when the
idea is thought of as a realistic creation. The stage of idea blossoming is
critical because ideas by themselves have no meaning.
➢ Verification: This is the last thing to verify the idea as realistic and useful
for application. Verification is concerned about practicality to
implement an idea and explore its usefulness to the society and the
entrepreneur.
Empowering
HOW DOES A POTENTIAL ENTREPRENEUR EVALUATE AN OPPORTUNITY?
Here are some important factors to consider when deciding whether a business opportunity is worth embracing:
Market Size - One of the most important factors when evaluating a Management Skillsets - What are the skillsets of
business opportunity is market size. Do a little market research. Figure Management. If you are evaluating your own business
out if there is a market for the opportunity and how big that market is. opportunity, you need to be honest about what you bring
Before you move forward, you want to be sure the demand is there. to the table, and what addition to look up for.
Relationships - Does the business opportunity come with some Passion and Persistence - Even if there is a bit of a talent
relationships? What are your relationships with potential investors or deficit, it’s possible, in some cases, to make up for that with
customers? When you have more relationships, the opportunity is likely passion and persistence. Are you working with people who
to run smoother. will get the job done? Do you trust that they have the
passion to make things happen?
Ability to Manage Cash Flow - Next, you need to look at the ability to
manage cash flow. Is there start-up funding for the business? What
about ways to keep funding the business each month.
Empowering
2.0 - ORGANIZING YOUR COMPANY AND STAFFING REQUIREMENT
An organization is basically a group of people who collectively work to achieve

common goals. Division of responsibilities under a ranking system is the backbone
of any organization. Every organization comprises of people who run it. These
people share common goals and objectives. In order to achieve them, these
people also share roles and responsibilities with each other.
Empowering
DEVELOPMENT OF AN ORGANIZATIONAL STRUCTURE
➢ Clear Definition of Objectives: Firstly, the main objectives of the organization

must be clear. These objectives determine what kind of structures are required.
A standard structure can never suit every kind of organization.
➢ Identification and Grouping of Activities: The next step here is to identify

activities that members of the organization must perform. Since every business
activity requires many tasks, clear identification of them is important.
➢ Determination of the Structure: After completing the first two steps, the
organizers finally determine the overall structure. He defines the ranks and
hierarchy in which people will function. Creation of departments also happens
in this step.
➢ Revision of the Structure: Once the structure starts functioning, it can show up
problems and shortcomings. For example, the marketing and sales
departments often perform similar functions.
Empowering
STAFFING IN AN ORGANIZATION
Staffing is the function by which managers build an organization

The process of Staffing is highlighted in the following ways
through the recruitment, selection and development of individuals as follows-
as capable employees. The staffing function of management
➢ Manpower Planning
consists of few interrelated activities such as planning of human
➢ Recruitment
resource, recruitment, selection, placement, training and
development, remuneration, performance appraisal, promotion ➢ Selection
and transfers. ➢ Placement
➢ Training
➢ Development
➢ Appraisal
➢ Determination of Remuneration
Empowering
3.0 - BUSINESS OWNERSHIP AND MANAGEMENT STRUCTURE
SOLE PROPRIETORSHIP LIMITED LIABILITY COMPANY
A limited liability company is a legal entity established by an

This is also known as one-man business; it entails the setting up of a association of many people who contribute capital in accordance
business outfit exclusively by one person. One very disturbing thing with the law for the purpose of carrying on business. In legal circle, a
about this type of business is that the owner bears the brunt in case company is an artificial and invisible person with rights and liabilities.
of adversity, that is he is personally liable. Also, it can sue individuals or organization and be sued in its
corporate name by individuals, group of individual or organization. IT
PARTNERSHIP can be further divided into Private and Public Company.
When a business is owned by two or more but not exceeding

LEGAL REQUIREMENT FOR BUSINESS
twenty, such association is called partnership. This is usually based
on mutual agreement among them, and such agreement is
Make sure you know the various federal, state, and local
contained in a document called “Deed of Partnership”.
registrations that identify your Enterprise for tax and legal
purposes. You may need a Professional Help or talk to a Business
Law Attorney.
Empowering
4.0 - DEVELOPING CORE VALUES, VISION AND MISSION
INTEGRITY PASSION LEADERSHIP TEAMWORK
Empowering
THE MISSION STATEMENT LEADS TO STRATEGIC GOALS.
➢ A vision statement is a statement of an organization’s overarching aspirations of The mission statement leads to strategic
what it hopes to achieve or to become. The vision is a broad description of the goals.
value an organization provides. It is a visual image of what the organization is
trying to produce or become. Vision statements should be clear and concise, ➢ Strategic goals are the broad goals the
usually not longer than a short paragraph. organization will try to achieve. By
describing why, the organization exists, and
where and how it will compete, the mission
➢ The Mission Statement: It defines how the organization will be different from other
statement allows leaders to define a
organizations in its industry. Here are examples of two mission statements from
coherent set of goals that fit together to
successful businesses: Examples!
support the mission
E g: Adidas: We strive to be the global leader in the sporting goods industry with
brands built on a passion for sports and a sporting lifestyle. E g: Amazon: We seek to
be Earth’s most customer-centric company for four primary customer sets:
consumers, sellers, enterprises, and content creators.
Empowering
ACHIEVING S.M.A.R.T GOALS

➢ Operational Goals: Specific, measurable results expected from
Typical Organizational Goals and Plans
departments, work groups and individuals within the organization.
➢ Strategic Goals: Broad statement of where the
organization wants to be in the future; ➢ Operational Plans: Plans developed at the organization’s lower
➢ pertain to the organization rather than to specific divisions level that specify action steps towards achieving operational goals
or departments. and that supports tactical planning activities.
➢ Strategic Plans: The action steps which an organization

intends to attain its strategic goals.
➢ Tactical Goals: Goals that defines the outcomes that

major divisions and departments
➢ must achieve for the organization to reach its over-all

goals.
➢ Tactical Plans: Plans designed to help execute major

strategic plans and to accomplish a specific part of the
company’s strategy.
Empowering
ACHIEVING S.M.A.R.T GOALS 1/2
Achievable: Attainable and not impossible to achieve - Ask yourself

Specific: Well defined, clear, and unambiguous
do I have the resources and capabilities to achieve the goal? If not,
Few questions to consider to make your goal specific include:
what am I missing? Have others done it successfully before?
➢ Who: Who is involved in this goal?
➢ What: What do we want to accomplish? Realistic: Within reach, realistic, and relevant to your purpose. - Few
➢ Where: Where is this goal to be achieved? questions to consider: Does this goal seem worthwhile?
➢ When do we want to achieve this goal? ➢ Is this the right time? •Does this match our other efforts/needs?
➢ Why: Why do we want to achieve this goal?
➢ Is it relevant to me?
Measurable: ➢ Is it applicable in the current socio-economic environment?

With specific criteria that measure your progress towards the
Time-Bound: With a clearly defined timeline. The purpose is to create
accomplishment of the goal. To make a goal measurable, ask
yourself: urgency.
➢ How many/much? Ask yourself: •Does my goal have a deadline? Including a starting
➢ How do I know if I have reached my goal? date and a target date? • when do you want to achieve your goal?
➢ What is my key performance indicator of progress?
Empowering
5.0 - PROCUREMENT PROCESS
Procurement refers to techniques, structured methods, and means used to streamline an organization’s procurement process
and achieve desired results while saving cost, reducing time, and building win-win supplier relationships. Procurement can be
direct, indirect, reactive, or proactive in nature.
What is a Procurement Process? ➢ These are the important stages in the procurement process
flow:, Step 0: Needs Recognition
➢ It's the series of processes that are essential to get products or services
from requisition to purchase order and invoice approval: ➢ Step 1: Purchase Requisition : Step 2: Review of Request
➢ Step 3: Budget Approval. :

➢ Process - The list of rules that need to be followed while reviewing,
ordering, obtaining, and paying for goods/services.
➢ Step 4: Quotation Requests
Checkpoints/steps increase with the complexity of the purchase.
➢ Step 5: Negotiation & Contract
➢ People - These are stakeholders and their specific responsibility in the
procurement cycle. They take care of initiating or authorizing every ➢ Step 6: Receive Goods/Services
stage of the process. The number of stakeholders involved is directly
proportional to the risk and value of the purchase.
➢ Step 7: Three-Way Matching
➢ Paperwork - This refers to the paperwork and documentation involved ➢ Step 8: Invoice Approval Payment
in every stage of the procurement process flow, all of which are
collected and stored for reference and auditing reasons. ➢ Step 9: Record Keeping
Empowering
THE COMPETITIVE LANDSCAPE & BUSINESS ENVIRONMENT
The Competitive Landscape: ➢ Global Forces - Changes in the global environment

offer tremendous opportunities and potential threats
➢ Technological Forces - Failure to monitor and address the major
for businesses. The importance of accessing global
technological innovations may adversely affect a firm’s competitive
markets has become more emphasized as a result of
edge, particularly if competing firms use technical improvement.
the development of satellite communication, cheaper
and faster modes of transportation, the privatization of
➢ Demographic Forces - These are trends in population characteristics
several overseas businesses and economic alliances
such as age, ethnic makeup, education, family, and gender
among countries.
distribution. The changes in demographic factors can have a
significant impact on an emerging business, particularly if they
indicate the developing trends. Changes can affect demand for a
company’s product and Labour- for a company’s ability to hire
employees.
Empowering
RESOURCES
STAGE MODULE TOPIC
BIGINNER’S MODULE 2 BUSINESS OWNERSHIP

COURSES
RESOURCES FOR MODULE 2
Exercise 1 What Role does Mission Statement and Vision Statement play in planning the company’s strategy?
Exercise 2 Discuss the steps a company’s management take to motivate the staff for greater achievements?
Exercise 3 Paper-driven procurement has a cascading effect on an organization's bottom line. Discuss with a mentor
Exercise 4 Goal Setting Exercise
1. List all your goals for 2020. Be specific. How does the goals align to the over-all strategic goals of your
organisations?
2. How do you plan to measure the goal? Is the goal achievable in 2020? If yes, why do you think so? If no, why?
Case Study 1 Two brothers opened a pastry, dividing the pastry and management side of the business between them. The
company has been in operation for 18 months and the pastry orders have increased and has become very
profitable.
The company is now considering opening additional 3 branches and has consulted you to guide them on the best
line of strategy to adopt and enter the new markets. Discuss your views about this proposal
Empowering
RESOURCES
Case The Power of Goal Setting by Brian Tracy
Study 2 Once you have taken the time to decide exactly what you want, you will experience an endless flow of opportunities that will help
move you in that direction. Example, a young woman worked in CDC Ltd Company as an executive secretary. At the same time, she
had a goal to be a successful real estate agent and investor, So, while she worked at CDC Ltd, she regularly took night courses to get
her real estate agent’s license and to learn how to buy and sell real estate profitably. Over the course of a year, she and her husband
bought, fixed up and sold three houses. They made more money from their real estate transactions than they did from their jobs. At the
end of the year, she passed the test and got her real estate agent’s license.
Within a few days of getting her license, she and her husband were sitting in a small restaurant, and they got into a conversation with a
woman at the next table and it turned out that this woman was a very successful real estate agent who needed an executive assistant
to work with her and learn the real estate profession. They got along so well that the executive secretary was offered the job, where
she would be earning double what she could earn as a secretary. Few years later she was made the Chief Operating Officer of the
real estate company and her positioning gave her unlimited potential.
The secretary did not wait for an opportunity to come to her. She set a goal, planned and went to work to prepare herself for the
opportunity when it arose.
Discuss with a mentor how you intend to position your organisations to achieve similar or bigger heights in the next one year of
operation using the power of goal setting.
Further http://www.entrepreneur.com, http://www.hongkiat.com
Reading
O'Donovan, K. (2017, April 16). 20 Inspiring Vision Statement Examples (2017 Updated). Retrieved August 01, 2017, from
Link
http://www.lifehack.org/articles/work/20-sample-vision-statement-for-the-new-startup.html ↵
To read the extended lesson content! Please click the link below:
Beginner Module 2- Business Ownership
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Thank you!
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Beginners Module 2 - Business Ownership

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Empowering

THE TEF BUSINESS MANAGEMENT

BEGINNER’S COURSES: MODULE 2

OVERVIEW MAIN OBJECTIVES

At the end of the training participants will be able to;

The module is another star-up pack that enables entrepreneurs

1.0 - INTRODUCTION TO ENTREPRENEURSHIP

➢ An entrepreneur is a person who identifies opportunities,

➢ To start a business, it is essential to learn the specific skills that

PERSONAL SKILLS INTERPERSONAL SKILLS

THE ENTREPRENEURIAL PROCESS

To generate an idea, the entrepreneurial process must pass through

➢ Germination: This is like seeding process, not like planting seed. It is

➢ Incubation: This is a stage where the entrepreneurial process enters

THE ENTREPRENEURIAL PROCESS

➢ Feasibility study is done to see if the idea can be commercially viable.

HOW DOES A POTENTIAL ENTREPRENEUR EVALUATE AN OPPORTUNITY?

2.0 - ORGANIZING YOUR COMPANY AND STAFFING REQUIREMENT

An organization is basically a group of people who collectively work to achieve

DEVELOPMENT OF AN ORGANIZATIONAL STRUCTURE

➢ Clear Definition of Objectives: Firstly, the main objectives of the organization

➢ Identification and Grouping of Activities: The next step here is to identify

Staffing is the function by which managers build an organization

and transfers. ➢ Placement

3.0 - BUSINESS OWNERSHIP AND MANAGEMENT STRUCTURE

SOLE PROPRIETORSHIP LIMITED LIABILITY COMPANY

A limited liability company is a legal entity established by an

When a business is owned by two or more but not exceeding

4.0 - DEVELOPING CORE VALUES, VISION AND MISSION

INTEGRITY PASSION LEADERSHIP TEAMWORK

THE MISSION STATEMENT LEADS TO STRATEGIC GOALS.

ACHIEVING S.M.A.R.T GOALS

➢ Strategic Plans: The action steps which an organization

➢ Tactical Goals: Goals that defines the outcomes that

➢ must achieve for the organization to reach its over-all

➢ Tactical Plans: Plans designed to help execute major

ACHIEVING S.M.A.R.T GOALS 1/2

Achievable: Attainable and not impossible to achieve - Ask yourself

Measurable: ➢ Is it applicable in the current socio-economic environment?

5.0 - PROCUREMENT PROCESS

➢ Step 3: Budget Approval. :

THE COMPETITIVE LANDSCAPE & BUSINESS ENVIRONMENT

The Competitive Landscape: ➢ Global Forces - Changes in the global environment

STAGE MODULE TOPIC

BIGINNER’S MODULE 2 BUSINESS OWNERSHIP

Beginner Module 2- Business Ownership

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